Published date:Feb 18 2025

Journal Title: KnE Social Sciences

Issue title: The 2024 AAPA-EROPA-AGPA-IAPA Joint Conference

Pages:308 - 325

DOI: 10.18502/kss.v10i4.18043

Melda Fadiyah Hidayatmeldahidayat@unesa.ac.idUniversitas Negeri Surabaya, Indonesia

Galih Wahyu PradanaUniversitas Negeri Surabaya, Indonesia

Muhammad Farid MarufUniversitas Negeri Surabaya, Indonesia

Zahrani Putri AnggraeniUniversitas Negeri Surabaya, Indonesia

Wanda Alvi DarmayantiUniversitas Negeri Surabaya, Indonesia

Maharani Putri NurwidyaUniversitas Negeri Surabaya, Indonesia

Dewi Rahma ShobirinUniversitas Negeri Surabaya, Indonesia

Revienda Anita FitrieUniversitas Negeri Surabaya, Indonesia

This study examines fiscal decentralization in Indonesia and globally focuses on public value. Empirically, several studies show that fiscal decentralization positively or negatively impacts economic growth. When examined with the meaning of public value, the budget, which is the basis of bureaucracy in the political process (decision-making and management institution), can reflect public values. The difference between these two phenomena means that some studies show variations in the implementation and effectiveness of fiscal decentralization. Using a semi-systematic literature review method, this study analyses empirical findings from Indonesia and globally on public value in the context of public goods and public interest. The results show that the facts related to fiscal decentralization both in Indonesia and globally still have a low degree of public value, especially concerning accountability in the meaning of public goods and public interests.

Keywords: fiscal decentralization, public value, accountability, public good, public interest, Indonesia, global

[1] Akita T, Riadi AA, Rizal A. Fiscal Disparities in Indonesia in the Decentralization Era: Does General Allocation Fund Equalize Fiscal Revenues? [https://onlinelibrary.wile.]. Reg Sci Policy Pract. 2021;13(6):1842–65.

[2] Aljaloudi J. Fiscal Decentralization in Jordan. Journal of Governance and Regulation. 2020;9(4):37–46.

[3] Arif MZ, Chishti MZ. Analyzing the Effectiveness of Fiscal Economic Growth: The Role of Institutions Decentralization In. Indian Econ Rev. 2022;26(2):325–41.

[4] Chen S, Liu X, Lu C. Fiscal Decentralization, Local Government Behavior, and Macroeconomic Effects of Environmental Policy. Sustainability (Basel). 2022;14(17):1-18.

[5] Digdowiseiso K. Are Fiscal Decentralization and Institutional Quality Poverty Abating? Empirical Evidence from Developing Countries. Cogent Econ Finance. 2022a;10(1):2095769.

[6] Jamil H, Ananda CF, Prasetyia F. It Takes Two to Tango. The Joint Effect of Democracy and Fiscal Capacity on Economic Growth in Indonesia. 2022;10(5):271–86.

[7] Khamdana, Abdillah. 2016. “Pengaruh Desentralisasi Fiskal Terhadap Pertumbuhan Ekonomi Daerah Di Indonesia, 2008-2012.” . https://doi.org/10.33105/itrev.v1i1.59.

[8] Lago-Pe nas S, Fernández-Leiceaga X, Vaquero-García A. “Spanish Fiscal Decentralization: A Successful (but Still Unfinished) Process.” Environment and Planning C. Politics and Space. 2017;35(8):1509–25.

[9] Lewis BD. Indonesia’s New Fiscal Decentralisation Law: A Critical Assessment. Bull Indones Econ Stud. 2023;59(1):1–28.

[10] Liu, Ruichao, Xiaoyan Zhang, and Pengcheng Wang. 2022. “AStudyontheImpactof Fiscal Decentralization on Green Development from the Perspective of Government Environmental Preferences.” International Journal of Environmental Research and Public Healt. https://doi.org/10.3390/ijerph19169964.

[11] Lopushniak G, Lobodina Z, Lyvdar M. Fiscal Decentralisation in Ukraine: Declaration and Practical Implementation. Economic Annals-XXI. 2016;161(9–10):79–84.

[12] Murshed SM, Tadjoeddin MZ, Chowdhury A. Is Fiscal Decentralization Conflict Abating? Routine Violence and District Level Government in Java, Indonesia. Oxf Dev Stud. 2009;37(4):397–421.

[13] Nenkova P. Fiscal Decentralization and Local Finance Reforms in Bulgaria: A Review of Ten Years’ Experience. Mediterr J Soc Sci. 2014;5(23):342–52.

[14] Qiao G, Yang D, Ahmad M, Ahmed Z. Modeling for Insights: Does Fiscal Decentralization Impede Ecological Footprint? Int J Environ Res Public Health. 2022 Aug;19(16):10146.

[15] Rotulo, Arianna, Christina Paraskevopoulou, and Elias Kondilis. 2022. “The Effects of Health Sector Fiscal Decentralisation on Availability, Accessibility, and Utilisation of Healthcare Services: A Panel Data Analysis.” International Journal of Health P.

[16] Siburian, Matondang Elsa. 2022a. “Fiscal Decentralization and Corruption: A Case of Indonesia.” https://doi.org/10.1080/13504851.2022.2128164.. .

[17] Sofilda E, Hamzah MZ, Kusairi S. Analysis of Fiscal Decentralisation, Human Development, and Regional Economic Growth in Indonesia. Cogent; 2023. https://doi.org/10.1080/23322039.2023.2220520.

[18] Udeagha MC, Breitenbach MC. Can Fiscal Decentralization Be the Route to the Race to Zero Emissions in South Africa? Fresh Policy Insights from Novel Dynamic Autoregressive Distributed Lag Simulations Approach; 2023.

[19] Wang E, Cao Q, Ding Y, Sun H. Fiscal Decentralization, Government Environmental Preference and Industrial Green Transformation. Sustainability (Basel). 2022;14(21):1 20.

[20] Zahra S, Badeeb RA. The impact of fiscal decentralization, green energy, and economic policy uncertainty on sustainable environment: a new perspective from ecological footprint in five OECD countries. Environ Sci Pollut Res Int. 2022 Aug;29(36):54698–717.

[21] Hung NT, Thanh SD. Fiscal Decentralization, Economic Growth, and Human Development: empirical Evidence. Cogent Econ Finance. 2022a;10(1):2109279.

[22] Jin Y, Rider M. Does Fiscal Decentralization Promote Economic Growth? An Empirical Approach to the Study of China and India. J Pub Budg Account Financ Manag. 2020;34(6):146–67.

[23] Snyder H. Literature Review as a Research Methodology: An Overview and Guidelines. J Bus Res. 2019;104(July):333–9.

[24] Ocheni SI, Agba MS. Fiscal Decentralisation, Public Expenditure Management and Human Capital Development in Nigeria. Academic Journal of Interdisciplinary Studies. 2018;7(1):153–62.

[25] Rodden J. Comparative Federalism and Decentralization on Meaning and Measurement. Comp Polit. 2004;36(4):481–500.

[26] Bartolini D, Stossberg S, Blöchliger H. 2016. “Fiscal Decentralisation and Regional Disparities.” OECD Working Papers on Fiscal Federalism (1330): 3. https://www.oecd ilibrary.org/fiscal-decentralisation-and-regional

[27] Puspita, Dewi et al. 2021. “Dua Dekade Implementasi Desentralisasi Fiskal Di Indonesia.” Badan Kebijakan Fiskal: 289. .

[28] Udeagha, Maxwell Chukwudi, and Nicholas Ngepah. 2022. “Dynamic ARDL Simulations Effects of Fiscal Decentralization, Green Technological Innovation, Trade Openness, and Institutional Quality on Environmental Sustainability: Evidence from South Africa.” S. https://doi.org/10.3390/su141610268.

[29] Ahmed N, et al. 2023. “Environmental Regulation, Fiscal Decentralization, and Agricultural Carbon Intensity: A Challenge to Ecological Sustainability Policies in the United States.” Sustainability (Switzerland) 15(6).

[30] Park J. Fiscal Decentralization and the Composition of Local Government Expenditure: evidence from South Korea. Public Finance Rev. 2022;50(1):62–90.

[31] Aritenang AF, Chandramidi AN. The Spatial Effects of Fiscal Decentralization on Regional Convergence: The Case of Regions in Indonesia [J.]. GeoJournal. 2023;88(2):2011–30. Available from: https://link.springer.com/article/10.1007/s10708 022-10724-2

[32] Carreras, Yasemin İrepoĞlu. 2016. “Fiscal Decentralization and Inequality: The Case of Spain.” Regional Studies, Regional Science 3(1): 295–302. .

[33] Sudhipongpracha T. Do the Poor Count in Fiscal Decentralization Policy? A Comparative Analysis of the General Grant Allocation Systems in Indonesia and Thailand. J Asian Public Policy. 2017;10(3):231–48.